The Profit Equation is: Revenues – Expenses = Profit R(u)-V(u)-F= Profit Revenue-Variable Costs-Fixed Costs=Profit All of the above

Classified in Economy

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FC_ expenditure on items which does not charge with the number of items sold. 

VC_ Costs which vary according to the number of items sold or produced.
TC_ The total amount of money spent running a business over a certain period of time. 
REVENUE_ Is how much money a business receives from the product or service sold. (interest, investment, rental income)
EXPENDITURE_ Is how much money businesses spend such as on stock, advertising.
START UP COSTS_ The costs incurred when setting up a business.
OPERATIING (RUNNING)costs incurred in the day to day runninf of a busines.
OVERHEADS_The everyday running costs of a busines.



BUDGETING_ Planning future expenditure and revenue targets with the aim of ensuring a profit is made. 
BUDGETING CONTROL_ The process of checking what i actually happening, comparing this with the plan and taking actin if thing are not correct. 
ASSETS_ items hat a business buys that normally last a long time such as a van or a building _ things that can contribute towards how much the business is worth.
FASSETS_Are items that the business must keep to be able to trade in the long term.
CASSETS_ Are items that change with transaction, such as costs.



LIABILITIES_ These include all the business owes to others for example suppliers and the bank.
CLIABILITIES_ Is money that must be paid back within a year, such as a suppliers or the bank. 
LONG TERM LIABILITIES_ Include loans that can be repaid over a long period such as mortgage and hire purchase (rent)
SHARE CAPITAL The money is invested in the business by shareholders.
DEBTORS_*trade receivable* _people who owe money to the buiness for goods or services they have received.



TRADE PAYABLE_ Are traders whom the busine owes money because they hhave supplied goods or services.
RETAINED PROFITS_From the previous years. 
MONEY INVESTED_ By the owner of the shareholders(share capital).



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